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Why do we consistently undervalue the nonprofit and charitable sector in our society?

I have been thinking of my Dad a fair amount lately.  It has been 8+ years since he died – he would have been 76 today.  Dad loved a good debate.  He raised me to constantly seeking new knowledge, to read everything, to work to deepen my understanding of the world, and to question. 

Anyone who ever had dinner at a table with my father knows that good debate was at least as important as the food (and dad was a foodie).  Politics were most definitely discussed at the Simpson dinner table.  I don’t think there was ever a topic that was off limits – though there were times when my mother (considerably less enthusiastic about debate) would simply pick up and leave.  I have fond memories of our dinner debates, but this isn’t to say they didn’t at times get out of hand.  We had a strategy for that though – strategically issued dinner invitations to friends and neighbours who served as buffers, helping to keep us (somewhat) civil. 

One of the ongoing debates I had with my dad, was over my choice of career path and the value of the nonprofit sector.  He thought I should be a banker, a “merchant banker” specifically.  I didn’t.  Had I wanted to go that route, I could have.  An undergraduate degree in Economics, an MBA, jobs within development finance institutions and more recently a credit union.  If I wanted to be a banker, the opportunities were certainly there for me.  But I chose to work for, and with, nonprofit organizations, something he repeatedly told me was wasting my education.  He was wrong.  

The fact of the matter is, he didn’t see value in the nonprofit sector.  He was wrong.  He felt that the nonprofit sector didn’t contribute to Canadian GDP.  He was wrong.  And, that the nonprofit sector didn’t pay people what they were worth.  He was right on this count; but failed to see how his own beliefs were a major contributor to that issue.  To him you volunteer for charities, you didn’t work for them.   

I’ve been thinking about his thoughts on the sector throughout the pandemic, because honestly where would we be as a society without the nonprofit organizations that have been ensuring that those who are out of work can access food, that those struggling with isolation can access the mental health supports they need, that those without adequate housing could safely isolate.  And really who do we think has been doing the advocacy to government around stopping evictions, or working to help government understand how to reach hard to reach communities?   And yet, public sentiment and government support for the sector has been somewhat lacklustre, an afterthought.  When the Federal wage subsidy was fist announced last year, it took a few days before there was clarity as to whether or not nonprofit organizations qualified for the program.  And while dollars have flowed to select area of the nonprofit sector – food banks, women’s shelters, homeless – this was in response to crisis situations, there hasn’t been much in terms of direct supports to the sector as a whole.  The nonprofit sector has largely been lumped in with small business, but the economics, finances and realities of the sector are not the same as small business.  Admittedly, the recent Federal budget shows some promise, however the devil will be in the details, and there is still a lack of action on many of the Special Senate Committee on the Charitable Sector.     

There was an article that popped up in my LinkedIn feeds earlier this week (originally published in September 2020).  The title was “Investing in Women Isn’t A Fucking Charity.”  The article goes on to argue the importance of investing in women owned businesses, and highlights just how entrenched the male dominated status quo is in the venture capital space.  I agree with everything said in the article (and encourage you to read it).  But I found the last few lines to be triggering “Invest in women.  We’re not a fucking charity. We’re a $3 Trillion Opportunity.”  Dad would have agreed with the article – despite his misguided ideas about the sector as a whole he generally came down on what I would consider to be the right side of most social issues.  And in fairness to the author, the article does call out the need for continuing to fund charitable activities.  For me though, the idea that investing in charity isn’t also an opportunity is thinking that needs to be shifted, and I’m not talking about social finance (that’s a debate for another day), but the recognition that part of the ability for businesses to thrive comes from the social supports that nonprofit organizations provide.  We invest in society through nonprofit organizations, those investments create opportunities.  Yet we only value the financial return, and we don’t dig deep enough to understand that often those financial returns rely on the supports provided by the nonprofit sector – as a society we continually underestimate and undervalue the ways in which we have benefitted from nonprofit and charitable organizations (from ensuring that the workforce is housed and fed, to the provision of childcare, supports for employee mental health, as well as research and policy work (that often gets adopted by business to further their interests)). 

As a consultant I get to work with lots of different organizations.  In the past year I have worked with groups looking to help ensure that the voices of women are heard in public discourse, that women fleeing domestic violence have a safe place to go, that people facing barriers to employment can access the support they need to find opportunities, that women entrepreneurs are supported in developing their ideas (that the venture capitalists can then invest in), that Indigenous communities can use their traditional knowledge about how to best protect their lands, that workplaces have the knowledge they need to be truly inclusive, that lower income senior women can find affordable housing, that people living with disabilities can access the arts, that Canada’s oceans and biodiversity are protected, that municipal governments understand the needs of their community, that we have a secure food supply, and that students in low-income communities are supported when learning from home.  I have worked with people with all sorts of degrees in both paid and unpaid positions.  What I can say without a shadow of a doubt is that none of them are wasting their educations. 

The problems that the nonprofit sector deals with are complex, and need people with a variety of skill sets, including the ability to think strategically.  In fact, I think the strategic challenges faced by nonprofit leaders are often far more complex than those faced by private sector leaders – when the bottom line isn’t dollars and cents, and when the necessary resources to address the issue aren’t readily available, the right answer can be harder to come by.

Yet, parents don’t encourage their children to pursue careers in the nonprofit sector – well maybe as doctors, but you certainly don’t hear stories about how people were pressured to become a social worker or a housing advocate.  The education system largely doesn’t even present it as an option – outside of certain disciplines.  I guess what I am grappling with, and why I never won the debate when he was alive (or perhaps in my own way I did, cause I’m definitely not a banker, and I don’t feel he disrespected my choices – he just didn’t understand them), is that while it is clear to me that my father was wrong, I am not wasting my education, I am still struck by how poorly understood the sector is, and at a bit of a loss as to what to do to change that reality. 

Surviving Budget Cuts – Lessons from the Harris Years

Two decades ago the Ontario non-profit sector was heavily impacted by deep cuts made by the Government of Ontario in response to ongoing recession and significant budget deficits. As we look to understand how the sector will be impacted by COVID, it is interesting to look back to see what can be learned from how the sector responded to the Harris Years.

Through interviews with sector leaders, who were at the management table during the Harris years Surviving Budget Cuts – Lessons from the Harris Years explores the long-term sector impacts and lessons learned resulting from the sudden, deep and sector wide cuts implemented by the Government of Ontario over twenty years ago.

UNLEASHED 2019

Read our notes on the Unleased Conference that took place at Bayview Yards in Ottawa on November 19th, 2019.

Balancing Strategy and Operations for Growth and Impact

The 4th annual Social Enterprise Unleashed Conference organized by CSED (Centre for Social Enterprise Development) took place earlier this week in Ottawa.  A short conference – just 2/3’s of a day – it packs a good punch and having attended the past 4 years I have always felt it was a good value.

It is an interesting time for social enterprise in Ontario, as many of the key intermediary organizations (including CSED) have seen significant funding cuts in the past year under the current provincial government. While this wasn’t a focus of the day – you certainly felt this reality in the conversations that took place. 

Keynote Speaker: Tonya Surman

The day started with a Keynote Presentation from Tonya Surman (CEO of CSI).  Tonya spoke of the incredible growth that CSI has experienced over a very short period of time. She spoke of having to deal with the reality of managing that growth – and experiencing that ongoing battle that nonprofit organizations face, where there is often money to build new things, but rarely enough money to keep things going once they are built. 

“Funding can push you off mission, can push you into unsustainable growth faster than anything.  We need funders who want to see our core work manifested in the world.”

~Tonya Surman, CSED Unleashed 2019 Keynote Presentation

Tonya spoke of how the past few years at CSI had been some of the most challenging in her career. While she spent her days in the community that she had been such a force in creating, surrounded by people who were focused on growth and scale and innovation, she also had to wrap her head around consolidation.  Having grown so quickly, CSI found themselves in a situation (not uncommon around organizations that experience significant growth) where there was a disconnect between the staff team and the overall organizational strategy, where growth hadn’t been supported by the proper systems, and where some of their business areas simply weren’t performing.  Today CSI is no longer looking at expansion, they are looking at going deeper in the communities where they are already established – growth that is more focused on depth and authenticity and true social change – rather than on being in many different locations or being bigger.  CSI has always been a fascinating organization to watch, and I personally look forward to hearing more about this transition in the years to come. 

Tonya’s presentation was followed by a panel discussion moderated by Michael Lachapelle, with Ian Bingeman (Youth Ottawa), Katie Miller (Impact Hub Ottawa) and Richard Plummer (Causeway Work Centre).  They spoke of the importance of building strategy with staff and stakeholders and of the importance of finding the balance between growth and quality, how as we grow our social enterprises, we need to understand what we might be giving up as an organization.  Though they all expressed it differently there was agreement that you had to be careful about not being too big, that growth shouldn’t be an objective, but the result of success.  I think it was Richard Plummer (but I may be remembering this wrong), likened the balance to playing an accordion – that in order to play the music you have to both expand and contract, and understand the rhythm of your business. 

Marco Pagani and Tessa Hebb

Tessa Hebb and Marco Pagani

Next up was a conversation between Tessa Hebb (Carleton University) and Marco Pagani (Ottawa Community Foundation).  It was mostly Tessa interviewing Marco.  Marco spoke of how the nonprofit sector needed to stand up, and “drive the bus”, to encourage cross sectoral social change.  He spoke of a need to move the sector away from a current practice of fighting fires to a more collective impact, solutions oriented approach – that aligns stakeholders around (1) what is the problem we are trying to solve (2) what is the vision and (3) what is the strategy and how does it get operationalized.  He teased a forthcoming announcement – December 9th – about a new social enterprise platform.  He also stressed that the Ottawa Community Foundation would continue to make direct impact investing part of its investment strategy through partners such as the Community Forward Fund and the Alterna Savings Microfinance program (which of course I feel is a really good program – run by some fantastic women!). 

The day closed with group table discussion led by Michael Lachappelle.  The exercise (inspired by Liberated Structures) had groups talking about three questions

  1.  How do we go about building a social enterprise so dysfunctional the social impact doesn’t matter and people don’t care?
  2. What do we do today that resembles that things that will create the worst possible outcome?
  3. What steps could we take to stop these unwanted behaviours or activities?

There were lots of interesting thoughts that came out of the exercise, however the one point that I took the time to jot down was that as a sector we need to “stop believing that diversity, safe workspaces, pay equity, and all the other things we strive for, will simply self emerge.”

Final Thoughts

What was missing from the day for me was something to link Tonya Surman’s keynote, which seemed to be calling for a new business model and Marco Pagani’s thoughts, which seemed to be calling for a more business-like approach in the sector.  I would have loved to have seen the two engage in a bit of debate on this as I think it is a fundamental question that we are all grappling with.  From what I know of both of them, they each have strong opinions, and that is the best kind of debate!